Application software producer CloudFlare has launched a $1.25bn initiative to attract funding for startups using its app deployment product through a partnership model that is the first of its kind.
The Workers Launchpad Funding Program will involve startups developing applications on the US company’s Cloudflare Workers platform to apply for equity financing from 26 venture capital firms participating in the scheme.
Several enterprise software producers have formed corporate VC units to boost their ecosystem through investing in startups using their products, the most notable being Salesforce through its Salesforce Ventures subsidiary.
However, CloudFlare’s initiative is unique in that it will not involve the corporate investing itself or making final decisions on deals. Instead, a Launchpad team featuring several ex-VCs and entrepreneurs will review submissions by startups and connect them to suitable venture firms taking part.
CloudFlare’s core product is a cloud software platform through which traffic for apps and websites can be routed to ensure they remain secure. Cloudflare Workers offers tools such as databases, storage and hosting, allowing users to build and deploy apps without having to maintain their own network infrastructure.
Jon Sakoda, founding partner at Decibel, the VC firm formed by networking technology producer Cisco, said in a release: “We see massive potential for the innovation that will arise when entrepreneurs are able to focus on ideas rather than infrastructure thanks to Cloudflare’s technologies.”
Workers Launchpad Funding Program was announced together with the expansion of the corporate’s Startup Plan, which gives selected startups a year’s free access to CloudFlare tools and products. They must have raised under $3m in funding and be members or recent graduates of a partner accelerator.
